Property Management for Real Estate investors, Raleigh NC
We work with NEW INVESTORS who are converting a current home to a rental or who are purchasing their first rental property. These customers don’t want to add more hours to a long work week as a DIY Landlord. Plus, inexperienced Landlords often end up with large repair bills due to tenant damage.
Given current market conditions, most Sellers find it very easy to sell a home. However, if you do not need the equity out of your current home to relocate or to purchase a second property, keeping your existing home as a rental can be very profitable.
The financing on your existing home carries a historic advantage; very low interest rates. While the monthly payment on your principal, interest, mortgages, taxes and HOA fees vs. monthly rental income may not generate a huge immediate cash flow benefit there is another financial advantage. The advantage is that your low interest rate generates larger principal payments. Typically, a current 30-year mortgage payment generates a principal payment from $500-$900 per month. So, even if you were breaking even on the cash flow your financial picture is growing by many hundreds of dollars every month. Plus, you are using the rent payment to make the mortgage payment. This holding strategy is something we call “forced appreciation.”
Besides “forced appreciation” there is the additional benefit of “natural appreciation.” Natural appreciate is the general market appreciation we have experienced over time. Appreciation rates vary for our Raleigh area market but as a general rule we have seen appreciation range annually from 3% to 7%. As an example, if a $300,000 home appreciates in value by 5% a year the total natural appreciation value for the year is $15,000. Think about what this looks like in five to ten years! The combination of low interest rates forced appreciation and natural appreciation combine to make a compelling case to hold rental property.
We also work with EXPERIENCED REAL ESTATE INVESTORS who have been managing their own properties and are now looking to spend their time either on more enjoyable activities or more profitable activities.
Fred Fetterolf is the Broker-in-Charge of the Firm. As an experienced investor himself, he is active in supporting the local real estate investing community. He has served on the Board as The Legislative Chair of the Triangle Real Estate Investors Association (TREIA). Fred is often a guest speaker for TREIA general meetings and sub-group support groups. Fred is also a member of the National Association of Residential Property Managers (NARPM) and is working towards an advanced degree offered by NARPM called “Residential Management Professional” (RMP) and is currently serving on the local NARPM Raleigh area chapter as a Board Member.
If you are from this area you may have heard about the Triangle Real Estate Investors Association (TREIA). This is a great local networking group where you can meet Wholesalers who secure great deals with purchase contracts that can be resold to buy and hold investors.
We offer discounted management rates for investors with a minimum of four properties. Our Firm is a great match for residential investors with single family homes, townhomes and condominiums.
For real estate investors with Section 8 portfolios, student housing, quadplexes and apartment buildings we can offer a good referral as we do not currently provide management services for these portfolios.